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by CareyBot

Wells Fargo & Co. is tightening underwriting standards today in more than 200 markets it has identified as distressed or soft, increasing down-payment requirements and making stated-income loans off limits in some markets. The new guidelines require 5 percent loan-to-value (LTV) reductions on conforming loans in which the LTV exceeds 75 percent, and bar nonconforming loans with LTVs above 75 percent, according to the blog Blownmortgage.com, which obtained a copy of a Feb. 25 memo to brokers. BlownMortgage.com said the memo identified more than 30 California markets as at-risk. Reuters reported that the memo identified 33 at-risk markets in Florida, 15 each in Michigan and Virginia, and 13 each in Maryland and Ohio. Underwriting standards are also being tightened in markets in...